KSA construction deals fall 13% in 2012
Contracts awarded saw a sharp jump in Q4 2012
Saudi Arabia saw construction deals decline by 13% in 2012.
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Constructions deals awarded in Saudi Arabia declined by around 13% during 2012. Total contracts in 2012 amounted to $63bn compared to $72bn in 2011 according to the Gulf Kingdom’s largest bank National Commercial Bank (NCB).
They added that contracts recorded a sharp rise in the fourth quarter. The value “rebounded strongly” in the fourth quarter following a relatively weak third quarter of 2012 to reach $18bn. The strong push during the fourth quarter allowed 2012 to end on a high note, where approximately $63bn worth of contracts were awarded, it said.
“Although the value of awarded contracts dipped compared to 2011’s, several sectors witnessed unprecedented capital spending compared to previous years such as power ($12.5bn), petrochemicals ($12.5bn),healthcare ($3.7bm) and roads ($4.5bn), NCB said in a study.
In the fourth quarter alone, contracts awarded in oil and gas sector amounted to about $7bn, while the power sector accounted for another $4.2bn.
The industrial sector contributed $1.6bn during the fourth quarter, while the commercial real estate and education sectors had $.9bn and $.8bn worth of contracts awarded, respectively.
“The $63bn in contracts awards during 2012 reflected the construction industry’s continued vibrancy, and its foundation as a fundamental building block of the Kingdom’s economy,” the study said.
